Todd Boehly’s Insurer Vows to Restructure Collateral Loans

Billionaire Mark Walter's holding company, TWG Global, is actively working with U.S. regulators to address concerns regarding related-party investments held by his insurance companies, Delaware Life Insurance Company and Clear Spring Life and Annuity Company. TWG stated that there has been "no fraud" and has filed a plan with the Delaware Department of Insurance to eliminate all affiliated exposure at these insurance entities. This initiative aims to reduce affiliate exposure on the insurers' books in an orderly fashion, a plan currently under evaluation by the Delaware Department of Insurance.

U.S. prosecutors, including the U.S. Attorney's Office for the Southern District of New York, and the SEC are investigating Walter's insurance companies for potentially miscategorizing certain private credit investments as unaffiliated. Earlier this year, Delaware Life and Clear Spring received subpoenas. In response, Delaware Life restated its annual financial statements in June, reclassifying a significant portion of its private credit investments as related-party assets. This restatement increased Delaware Life's affiliated investments from less than 5% to 42% of invested assets by the end of 2025.

To address these issues, TWG agreed earlier this month to swap up to $6.5 billion of Delaware Life's related-party investments for an equivalent amount of independent assets, a transaction awaiting regulatory approval. This move could reduce Delaware Life's total affiliated assets from 39% to roughly 26% of invested assets as of June 30. Concurrently, Walter has been selling major sports assets, including his controlling interest in the Los Angeles Lakers for a record $12.5 billion to a group led by Joshua Kushner and Bob Iger. Discussions are also underway for Walter and Todd Boehly to sell their stakes in Chelsea Football Club to majority owner Clearlake Capital. Despite these sales, TWG maintains that the Los Angeles Dodgers and the Cadillac Formula 1 team are not for sale at "fire sale" prices to generate capital for insurance operations.